The Advertising Standards Council of India (ASCI) has published guidelines covering the advertisement of different crypto assets after finding that several ads “do not adequately disclose” risks associated with crypto. The ASIC noted in its guidelines that crypto companies need to put on a disclaimer in their advertisements. Earlier, the Indian finance ministry had announced a 30% tax on crypto gains.
All virtual digital assets products or exchanges need to share a disclaimer on their advertisements.
“In order to safeguard consumer interest, and to ensure that ads do not mislead or exploit consumers; lack of expertise on these products, ASCI has extensively consulted with different stakeholders including government and the virtual asset industry—to frame guidelines for virtual digital asset advertising,” the ASCI noted in the press release.
As part of the new crypto guidelines, all crypto companies and exchanges must share this disclaimer: “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
The Reserve Bank of India is pushing for a crypto ban.
The Reserve Bank of India governor, Shaktikanta Das, is still pushing for a complete crypto ban. The central bank described private cryptocurrency as “a big threat to our macroeconomic stability and financial stability.” Meanwhile, India’s finance minister Nirmala Sitharaman had earlier announced a 30% tax on crypto income with no exemptions or deductions.
India has joined a list of growing countries issuing guidelines regarding crypto advertisements. Earlier this year, Spain launched a crackdown on crypto advertising, requiring influencers to disclose whether they’ve received remuneration for promoting cryptocurrencies, with fines for non-compliance up to $342,000. The UK government had announced plans to introduce legislation to protect consumers from misleading crypto ads.